With the recent increase in buy to let mortgages, landlords are looking in every direction to save as much as they can. Some landlords have had to up the rent on their properties. However, some are reluctant to do this at the risk of losing their tenants. Some landlords have had to re-mortgage to an interest only mortgage, but this isn’t ideal either.
One overlooked area that lots of landlords are missing out on is saving money on their landlords insurance. This is a crucial area that all landlords should be looking at. However, with any insurance there are certain things that you need to look out for such as whether you should go for buildings insurance or contents insurance or both.
Many landlords opt for buildings insurance as they rent it without any furniture. However, most insurance companies still cover permanent fixtures and fittings. This essentially covers the bricks and mortar and helps you cover costs on things such as walls, windows and roofs. One thing to make sure your buildings content covers is accidental damage. For instance, if your tenant decided to take on some DIY and unfortunately knocked down a load bearing wall, this would cause a significant amount of damage. This is where the accidental damage cover would be relevant.
Let’s take a look at landlords who rent property with furniture in it. They are going to need buildings and contents cover. Contents cover will allow the landlord to protect all of their positions, but not that of their tenants. Their tenants would need separate contents insurance. When the landlord rents out their property, an inventory will be taken either by the landlord themselves or by the estate agent managing the property. This will ensure that all the landlord’s possessions will be registered and their condition.
In essence, the easiest way for any landlord to reduce their outgoings is for them to look at their current insurance arrangements again and work out whether what they have is actually the best option or not. The one thing that landlords cannot afford to do currently, whether they rent out a terraced house our penthouse in Mayfair, is pay out for any damage caused to their property which wasn’t properly insured. The clever landlord will always plan for the future and in these times taking a look at their insurance cover has never been more crucial. It could result in significant savings in the long run.